Peace be upon you as well, I hope I'll be the right fit in answering your question :)
ABRAHAM'S SACRIFICE
In Islam, there is no idea of a "blood sacrifice" that alleviates sin. The closest to a blood sacrifice is when God instructed Abraham to sacrifice his son, Ismail to show his devotion to god. Of course, when Abraham was about to sacrifice his son, God sent a ram for him to slaughter instead.
We don't sacrifice animals (or humans for that matter) for God to remove our sins.
"‘O my father, do what you are commanded to do. You will find me, God willing, patient’. And when they had both submitted and he put him down upon his forehead, We called to him, “O Abraham, you have fulfilled the vision”. Indeed, We thus reward the doers of good. Indeed, this was the clear trial and We ransomed him with a great sacrifice".
-Quran 37:102-107
Note that God says in the Quran, the blood does not go to Him:
"Neither their meat nor blood reaches God. Rather, it is your piety that reaches Him. This is how He has subjected them to you so that you may proclaim the greatness of God for what He has guided you to, and give good news to the good-doers."
-Quran 22:37
BLOOD
Muslims are told not to consume blood as it's haram:
"He has forbidden you only carrion, blood, the flesh of the swine, and that which has been offered to other than God. But should someone be compelled, without being rebellious or aggressive, indeed God is all-forgiving, all-merciful."
-Quran 16:115
Note the sentence in bold: "and that which has been offered to other than God."
While Muslims aren't also allowed to hold blood sacrifices, we are also told not to consume anything that has been sacrificed other than God.
BLOOD MONEY
In Islam, we do have something along the lines of blood money.
"Oh you who believe! The law of equality is prescribed to you in cases of murder... but if any remission is made by the brother of the slain, then grant any reasonable demand, and compensate him with handsome gratitude. This is a concession and a Mercy from your Lord. After this whoever exceeds the limits shall be in grave penalty. In the Law of Equality there is (saving of) life to you, oh men of understanding; that you may restrain yourselves"
-Quran 2:178-179
"Never should a believer kill a believer, but if it so happens by mistake, compensation is due. If one so kills a believer, it is ordained that he should free a believing slave, and pay compensation to the deceased's family, unless they remit it freely... If he (the deceased) belonged to a people with whom you have a treaty of mutual alliance, compensation should be paid to his family, and a believing slave is freed. For those who find this beyond their means, is prescribed a fast for two months running, by way of repentance to Allah, for Allah has all knowledge and all wisdom"
-Quran 4:92
In Islamic law, victims of crime are recognized as having rights. The victim has a say in how the criminal is to be punished. In general, Islamic law calls for murderers to face the death penalty. However, the victim's heirs may choose to excuse the murderer from the death penalty in exchange for monetary damages. The murderer will still be sentenced by a judge, possibly to a lengthy prison term, but the death penalty will be taken off the table.
This principle is known as Diyyah, which is known in English as "blood money." It is more appropriately referred to as "victim's compensation" as well. While most commonly associated with death penalty cases, Diyyah payments can also be made for lesser crimes, and for acts of negligence (ex. falling asleep at the wheel of a car and causing an accident).
TL;DR
- Islam's only sacrifice would be slaughtering goats/sheep to honor Abraham's devotion to God.
- The blood of any sacrifice does not matter nor reach god, but only the devotion towards him and piety is what reaches god.
- Blood, in general, is forbidden for Muslims to consume at all.
- Blood money is required in Islamic law to exempt the death penalty in the case of murder.
I hope this answers your questions :)
EDIT
(Had to add it here since it was too long)
Your follow-up question:
How does atonement work in Islam, is it just by restoring or
rectifying the fault between the parties? Prayer? Fasting? How does
one atone or reconcile with The Creator?... Also, may you expound on
this: "Islam's only sacrifice would be slaughtering goats/sheep to
honor Abraham's devotion to God".
In Islam, we are told numerous times in the Quran that God is the most merciful. Sins vary in severity such as shirk (associating partners with God) and adultery, but there is not one sin God will not forgive as long as your repentance is sincere. There are numerous ways a Muslim can gain atonement such as:
- Doing ablution
- Asking God for forgiveness
- Fasting (Ramadan, Passover, etc.)
- Walking towards the Mosque
- Waiting for prayer
- When prostrating to god in prayer
Prophet Muhammad (saws) said:
“By the One in Whose hand is my soul, if you did not commit sin Allah
would do away with you and bring people who would commit sin then pray
for forgiveness.”
-Narrated by Muslim, 2749
To reconcile with God is simple in Islam. All one must do is constantly repent to God for their sins because God loves to forgive. By praying, reading the Quran, and essentially just follow Islam as a whole. Abandoning these things pretty much breaks your bond with God and displeases Him.
We Muslims are responsible for our own actions and sins. It's up to us to repent, not someone else.
What I mean about "Islam's only sacrifice would be slaughtering goats/sheep to honor Abraham's devotion to God" is that there are no human sacrifices towards God. The only thing similar to a sacrifice would be the command God gave to Abraham to slaughter his son which he ended up slaughtering a ram instead. That's the only reference in the Quran that uniquely comes close to a sacrifice.
